Friday , October 22 2021

Is Xero Limited (ASX: XRO) share price in the purchase zone?


The Xero Limited (ASX: XRO) stock price had a positive end to the week on Friday.

The accounting software company's shares ended the day over 3% higher to $ 41.98, which means they ended a volatile week for the most part.

Today's profit is particularly impressive for a bearish broker to note Credit Suisse Beat the wires this morning explain Xero as a sale.

Why is the broker busy at Xero?

According to the note, Credit Suisse has an underpriced value and a $ 35.00 target price on Xero's shares.

The broker confirmed his underperformance after Xero left the money from his $ 300 million convertible banknotes offered to work this week.

Although the broker considers the acquisition of Instafile as positive and believes that the new opportunities provided by this business and the Hubdoc acquisition are helpful, at this stage, it seems that subscriber growth is key.

And unfortunately, the broker suspects that its ANZ subscriber growth is likely to ease in the near future.

But not all brokers are crazy at Xero. A more positive comment came out Morgan Stanley This week.

That listing gave the company's shares an overweight and a price target of $ 50.00. This price target represents a potential upside of more than 19% for Xeros shares over the next 12 months.

According to the note, the broker has looked at the company's US outlook and does not believe it will be an important winner in the market.

However, it does not feel that it must be in order to motivate its share price. Morgan Stanley believes that success in other international markets and the ANZ market will suffice to drive its share price higher in the medium term.

Are you going to invest?

I agree with Morgan Stanley's view and believe that Xero would be a good buy and hold investment options along with other technical stars Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX).

If you like Xero, I recommend checking out these new and upcoming tech shares that have been rated as purchases.

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Motley Fool contributor James Mickleboro has no position in any of the aforementioned shares. The Motley Fool Australia owns shares in Altium, Appen Ltd and Xero. We Fools may not all share the same views, but we all believe that, given a wide range of insights, we get better investors. Motley Fool has an information policy. This article only contains general investment advice (according to AFSL 400691). Authorized by Scott Phillips.

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